Fed Interest Rate Decision Night: Market Volatility, Bitcoin Plunges, US Stocks Mixed, Gold and Silver Drop Slightly

Fed Interest Rate Decision Night: Market Volatility, Bitcoin Plunges, US Stocks Mixed, Gold and Silver Drop SlightlyAnticipation is running high as the Federal Reserve's September interest rate decision is about to be released, and the market is reacting intensely. Bitcoin, after experiencing gains in the previous two days, has plunged, resulting in over 60,000 liquidations in the past 24 hours

Fed Interest Rate Decision Night: Market Volatility, Bitcoin Plunges, US Stocks Mixed, Gold and Silver Drop Slightly

Anticipation is running high as the Federal Reserve's September interest rate decision is about to be released, and the market is reacting intensely. Bitcoin, after experiencing gains in the previous two days, has plunged, resulting in over 60,000 liquidations in the past 24 hours. Major European stock indices have also dipped into the red.

In late August, Fed Chair Jerome Powell hinted that the time for a rate cut had arrived, and the market widely expected the Fed to announce a rate cut at its September monetary policy meeting. However, the release of the US Core CPI data for August last week, which came in higher than expected, has cooled market expectations for a significant Fed rate cut.

Previously, the market generally anticipated a 25 basis point rate cut, with only JPMorgan expecting a 50 basis point cut. Most institutions believe there will be a 75 basis point cut by the end of the year, while Citi predicts two consecutive 50 basis point cuts following the September meeting.

Jeremy Siegel, a professor at the Wharton School, has urged the Fed to consider a more substantial interest rate cut, warning of the risk of a recession if they don't.

Besides the interest rate decision, US new home construction data for August was released tonight. The data shows that the annualized total of new home starts in August reached 1.356 million units, higher than both expectations and the previous value, representing a significant 9.6% month-over-month increase. Meanwhile, building permit data for August also came in above expectations, rising 4.9% month-over-month.

Currently, the market reaction to the Fed's interest rate decision remains uncertain. Investors should closely monitor the decision's content and adjust their investment strategies based on market fluctuations.